Morning Report

Remaining above 75.50 - 75.30; points out that the descending channel crude was moving within throughout the past period was a natural correction for the major medium term ascend. Today, crude is trading above the 20 MA at 77.20, where a possible bullish direction moving upwards will target main resistance for the descending channel. Note that breaching 75.15 could cancel out bullish expectations and bring back the bearish scenario (bearish scenario here).

The trading range for today is among the key support at 73.65 and the key resistance at 80.20.

The general trend is to the upside as far as 47.20 remains intact with targets at 85.00.

RecommendationBased on the charts and explanations above our opinion is buying oil from 77.20 targeting 79.20 and stop loss below 75.75, might be appropriate.